OECD: China will overtake the USA in 2016

China's economy expanded last year at 7.8pc - its slowest pace in more than a decade - and recent data has fuelled concerns that any rebound in the country's growth is losing steam.
However, the OECD was upbeat, predicting in a new survey of China's prospects that the country's economy could expand by 8.5pc this year and by 8.9pc in 2014.

While the OECD noted the slowdown in China's aggressive expansion, it nonetheless predicted that growth should average 8pc in this decade at current rates of investment and reform.
After allowing for price differences, it forecast that China could become the world's largest economy, overtaking America, around 2016.

Fuelling the OECD's positive prediction was an optimistic outlook for investment spending in the world's second-biggest economy.

"China has weathered the global economic and financial crisis of the past five years better than virtually any OECD country and than many other emerging economies," said the OECD.
"It is well placed to enjoy a fourth decade of rapid catch-up and improving living standards," the tank added. However, it did point to risks such as property prices and potential tension arising from social inequalities and an ageing population.